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Land Transfer Tax Refund for First-time Homebuyers

First Time Homebuyers

 

When you buy land or an interest in land in Ontario, you pay land transfer tax. First time home buyers of an eligible home may be eligible for a refund of all or part of the tax.
How much money could I receive?
The maximum amount of the refund is $4,000.

For example:
Cost of Home Tax Payable Tax Refund Net Tax Payable $100,000 $725 $725 $0 $200,000 $1,725 $1,725 $0 $300,000 $2,975 $2,000 $975
If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Finance, within 18 months after the transfer. No interest is paid on this refund.

Do I qualify?

To get a refund of land transfer tax, you:

  1. must be at least 18 years old
  2. must occupy the home as your principal residence within nine months of the date of transfer
  3. cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world,
  4. must be a Canadian Citizen and a permanent resident of Canada; and,
  5. if you entered into an agreement of purchase and sale before December 14, 2007, the eligible home must be newly constructed and you must be eligible for the Tarion New Home Warranty.

If you have a spouse, your spouse cannot have owned an eligible home, or an interest in an eligible home, anywhere in the world while being your spouse.
You must apply for a refund within 18 months after the date of the transfer.

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